[DRB]

http://www.msnbc.msn.com/id/15428994/

Freed from the burden of potentially moving financial markets worldwide with his every utterance, Alan Greenspan cut loose on the economy, the Iraq war, construction of a fence along the U.S.-Mexico border and a host of other topics.

The mostly unvarnished comments came Thursday when the former Federal Reserve chairman fielded a wide range of questions at a meeting of financial representatives in a hotel ballroom here. Clad in his customary crisp dark suit, Greenspan appeared comfortable — leaning back in his chair and crossing his legs.

On homeland security — including that at airports — Greenspan weighed in saying: “Well, I’m not one who is overly impressed with a lot of the things that we are doing.” He went on to say, “It is not clear to me whether any of that stuff works,” a remark that provoked laughter from the audience. “In fact, I’m reasonably sure it doesn’t,” he added.

Discussing the strain of entitlement programs on the nation’s long-term fiscal health, Greenspan said Medicare is much more of a problem and harder to deal with than Social Security.

“If you get beyond the political rhetoric” and assembled a group to solve Social Security, “it would take them 15 minutes. It would take them 15 minutes only because 10 minutes was used for pleasantries,” he quipped. The audience — people attending the Commercial Finance Association meeting — erupted in laughter.

I would be interested in what his thoughts would be on stabilizing social security.

He also discussed the shrinking importance of manufacturing to the country’s economic might. “Manufacturing is something we were terrific at 50 years ago,” Greenspan said, adding that it “is essentially a 19th and 20th century technology.”

I found this surprising. He always focused on the importance of manufacturing as a part of economic stability. I guess it was more a focus of what people want to hear. Words like this when he was the Fed Chairman would have had a profound impact on the markets. Its amazing how perception truly controls our economy.

 

[Changleen]

Perception is reality, as many people have commented.

I agree with the manufacturing comment, in fact I think I've posted almost exactly that a couple of times.

I agree with the Homeland security thing too.

 

[Changleen]

I would be interested in what his thoughts would be on stabilizing social security.

Probably raise taxes for the rich? Or just raise taxes period.

 

[Westy]

The whole eruption in laughter thing is what gets me. It is not that Greenspan is a particularly funny person but that he pretty much speaks the truth on issues that will never be solved because of political reasons although common sense could solve things quickly.

 

[Westy]

Probably raise taxes for the rich? Or just raise taxes period.

Or cut benefits. It is a pretty simple calculation.

 

[DRB]

Perception is reality, as many people have commented.

Perception isn't reality. Perception is an individual's reality. There is a big difference.

I agree with the manufacturing comment, in fact I think I've posted almost exactly that a couple of times.

Really? I don't remember that. <edit> not saying you didn't

 

[SPINTECK]

Probably raise taxes for the rich? Or just raise taxes period.

How about simply uncap FICA?? I never understood why people making millions only had to pay FICA on the first...87,000 (it' still uner 100,000). Surely that 7.65 percent is the same or less important to them as it is to those making less than the maximum cap. I think many of the middle class don't even know that there is a cap on fica for however you would define those making more than 87,000.

 

[Westy]

How about simply uncap FICA?? I never understood why people making millions only had to pay FICA on the first...87,000 (it' still uner 100,000). Surely that 7.65 percent is the same or less important to them as it is to those making less than the maximum cap. I think many of the middle class don't even know that there is a cap on fica for however you would define those making more than 87,000.

There is also a limit on what you get in return. In theory un capping it wouldn't do much unless you failed to uncap the payouts.

 

[DRB]

There is also a limit on what you get in return. In theory un capping it wouldn't do much unless you failed to uncap the payouts.

(Lifetime average salary is calculated only on the first $90K of salary in any given year).

There'd be some benefit but the real payoff comes if you uncap the tax but leave the payout limits in place, like you suggested. I saw a study that talked about halving the rate after $87k (maintaining the payout cap) and that basically eliminated most of the deficit in the years that everyone is worried about.

 

[Westy]

(Lifetime average salary is calculated only on the first $90K of salary in any given year).

There'd be some benefit but the real payoff comes if you uncap the tax but leave the payout limits in place, like you suggested. I saw a study that talked about halving the rate after $87k (maintaining the payout cap) and that basically eliminated most of the deficit in the years that everyone is worried about.

Either way the way to solve the problem is to Increase taxes for some and/or decrease benefits for others. Either way it won't happen as no politian will support that as it would be career suicide. Chances are the only way it will get solved is by cooking the books and hiding the truth from Joe Dumbass Taxpayer. I can't figure out if the the problem is with a greedy electorate or a broken system.

Personally I have planned my future expecting absolutely nothing from SS. To be honest anyone who makes over say $50K with some adjustment for family situations is retarded if they don't plan on funding their own retirement. I would gladly have the government tell me they will give me 1/4 of what they promise me now if they cut my FICA in half. I should be able to invest the difference and net more money the day of my retirement.

Right now if I live long enough and I actually get SS it will all be bonus money and will go towards holidays where I get to burn down villages in third world countries.

 

[Beast]

http://www.msnbc.msn.com/id/15428994/
I found this surprising. He always focused on the importance of manufacturing as a part of economic stability. I guess it was more a focus of what people want to hear.

The US is becoming a service based economy - transport, travel, insurance and financial services, computer, information, communications, etc. Simply put, the US can't compete with overseas markets when it comes to manufacturing. We're figuring out that we should focus on what we're good at - services. For instance, many of the asian countries have us cornered when it come to hard goods production, but take a look at their banking systems. Their largest institutions are similar to our credit unions.

http://www.projectduet.com
DU Environmental Team
DUET
University of Denver Environmental Team
Do it in the the dark
DUET in the dark Come on google . . .

 

[rockwool]

The whole eruption in laughter thing is what gets me. It is not that Greenspan is a particularly funny person but that he pretty much speaks the truth on issues that will never be solved because of political reasons although common sense could solve things quickly.

Yeah, and that laughter comes from people that aren't affected if there is a social security or not. They are the people that will pay a larger share of funding it and laugh sadisticly because of that...

Right now if I live long enough and I actually get SS it will all be bonus money and will go towards holidays where I get to burn down villages in third world countries.

Beauty! Are you constantly of your tits on eees and speed?

 

[Westy]

Beauty! Are you constantly of your tits on eees and speed?

I hope something was lost in translation there because it made no sense to me.

 

[rockwool]

I hope something was lost in translation there because it made no sense to me.

What part?

The beauty comment was for your sarcasm as what a good freedom loving SS should do on his holidays.

The "of your tits" is Brittish English for being totaly maxed out on something.